The electrical-service fee must cover purchased field delivery, materials and job-related allowances before it can support paid management. This fictional suburban US subcontractor-led contractor remains loss-making in its January 2027–December 2029 forecast. Subcontracting changes who delivers the work; it does not remove its cost.
Accept more fixed commitments only when paid-job evidence shows enough contribution after purchased delivery to compensate the owner-manager and dispatcher.
What does the customer fee buy?
Homeowners and small property operators buy defined repairs and upgrades. Independent contractor firms supply field delivery; the proposed company manages scope, quality and the customer relationship. The five categories allocate one workload, rather than five independent crews.
Purchased availability totals 320 scheduled field hours per month. After the opening ramp, April sells 192 field hours. The owner-manager supervises and the half-time dispatcher schedules work; neither adds billable field hours.
| Service | Sold hours | All-in hourly equivalent | Earned fee |
|---|---|---|---|
| Repairs | 57.6 | $145.00 | $8,352.00 |
| Panels | 38.4 | $165.00 | $6,336.00 |
| Rewiring/circuits | 38.4 | $155.00 | $5,952.00 |
| Lighting | 28.8 | $145.00 | $4,176.00 |
| EV chargers | 28.8 | $165.00 | $4,752.00 |
What remains after purchased delivery?
Direct costs consume 62% of fees. The saved adaptation splits those costs between materials and purchased field work. Only materials enter stock. Collection, permits/inspections and callbacks are additional revenue-linked allowances, rather than free services.
April revenue is $29,568.00. Subtract direct costs of $18,332.16 and operating expenses of $14,160.56 to reach EBITDA of -$2,924.72. This is a company loss before depreciation, interest and tax, even though each customer invoice includes a field-work charge.
Is owner remuneration already included?
The first-year monthly salary allowance is $6,000.00 for the owner-manager and $2,000.00 for dispatch, plus the model employer allowance. These commitments continue during unsold time. Removing owner pay would conceal part of the economic cost.
Operating-year 2027 EBITDA is -$45,001.92; net income is -$52,201.92. Depreciation explains part of the difference. Neither measure is a distribution available to the owner.
Can the reserve make the fee adequate?
The forecast assumes 9 collection days and 5 payment days. Proposed equity of $150,000.00 leaves $110,000.00 after startup uses. Cash falls to $10,993.78 while operating losses persist.
That reserve finances the deficit; it does not validate the fee. Funding is uncommitted, and refundable premises deposits and additional site work remain excluded. No selected jurisdiction, secured contractor quote or actual demand series is established.
What evidence should change the next estimate?
Prepare a job sheet separating the customer fee, subcontractor scope, materials, permit responsibility, callback allowance and management effort. Compare accepted quotes with completed paid work and the actual collection date.
Record the owner’s supervision time alongside purchased field hours. Before expanding availability, verify the real contractor arrangements, permissions and supplied-material responsibilities. If jobs consume more purchased work than the fee allows, revise scope or pricing before adding fixed commitments.
Make the next decision with your own evidence
Obtain an accepted subcontractor quote, a material list and a paid-job time/collection log before expanding availability.
Explore published business plan examples ↗Relay Point Electric is a fictional prelaunch scenario prepared with AI assistance. Inputs are illustrative; forecast results come from the matching saved financial model. Funding is proposed. The diagrams explain the case and do not depict actual premises, established demand or promised earnings. Replace the assumptions with evidence before committing.
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